Tasmania's Local Government Association is worried that one of the state's largest councils is cancelling its membership and another may follow.

Glenorchy City Council has voted to part with the assocation.

The Mayor, Adriana Taylor, says her council indicated a year ago it would be leaving because of budget concerns and the association's handling of water and sewerage changes.

"Glenorchy suffered enormously in terms of our rates revenue as a result of that," she said.

Hobart City Council says it is unhappy with the value it is getting for the $50,0000 a year membership fee.

Lord Mayor Rob Valentine says the council has given its notice and will follow through if representation of cities does not improve.

"Cities have particular needs, the council believes that it's not always recieving the suport that perhaps it would like," he said.

"The council is in a situation where it wants to make sure it maximises its value with the organisations it is involved with."

The Kingborough Mayor, Graham Bury, says the departures damage the group and may cause a chain reaction.

"It would have an effect on the financing of the organisation first of all because other councils would need to pick up the tab from the point of view of subscriptions."

"If Hobart were to leave the organisation, it would give reason for other councils to review their position."

Clarence City Council is awaiting the outcome of Hobart's decision, while Brighton, Devonport and Burnie councils say they are staying.

The Association's Alan Garcia says losing the Hobart and Glenorchy would weaken its bargaining power and could force cuts.

"If you lose $100,000 out of the organisation where you have a turnover of probably under $1.5 million it's quite significant. I mean that probably will be a matter of us cutting our cloth and maybe remaining member councils paying a little more," he said.

He says the association needs to address members' concerns or risk more leaving.

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